Private Money Deal Structurer
Structure private money deals with profit splits, preferred returns, and waterfall distributions.
Deal Structure
$300,000
Capital Contributions
Value of time, expertise, and deal sourcing
Investor: 83%Operator: 17%
Equity Split
Investor receives this return before profit split
Total Profit to Split
$75,000
12 month hold
Investor Returns
Capital Invested$250,000
Preferred Return$20,000
Total Profit$58,500
ROI23.4%
Annualized ROI23.4%
Equity Multiple1.23x
Operator Returns
Cash Invested$50,000
Sweat Equity$25,000
Total Profit$16,500
ROI on Cash33%
Effective Hourly$34/hr
Based on 40 hrs/month
Deal Summary
Structureequity split
Investor Share78%
Operator Share22%
Deal Fairness
• Investor: 23% annualized return
• Operator: $16,500 for 12 months work
• Both parties have aligned incentives
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